VR Hardware - NAFTA

NAFTA

Highlights

In NAFTA, revenue in the VR Hardware market market is projected to reach US$2.9bn in 2024.
Revenue in this region is expected to show an annual growth rate (CAGR 2024-2029) of 7.96%, resulting in a projected market volume of US$4.2bn by 2029.
Although most revenue in the global VR Hardware market market is generated China, in North American Free Trade Agreement (NAFTA) is also a significant player with a projected market volume of US$2.9bn in 2024.
In NAFTA, the number of users in the VR Hardware market market is expected to amount to 40.8m users by 2029.
User penetration in this market will be 6.9% in 2024 and is expected to rise to 7.8% by 2029.
Furthermore, the average revenue per user (ARPU) in NAFTA is expected to amount to US$81.2.
The United States is experiencing a surge in VR hardware innovation, driven by increasing consumer interest and advancements in immersive technology applications across various sectors.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The VR Hardware market in NAFTA is experiencing significant growth and development, driven by customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in NAFTA are increasingly interested in immersive and interactive experiences, which has fueled the demand for VR hardware. Virtual reality offers a unique way to experience games, movies, and other forms of entertainment, allowing users to feel like they are part of the action. Additionally, the growing popularity of VR technology in industries such as healthcare, education, and architecture has also contributed to the increased demand for VR hardware in the region.

Trends in the market: One of the key trends in the VR Hardware market in NAFTA is the increasing affordability and accessibility of VR devices. Manufacturers are constantly innovating and introducing new products that offer high-quality VR experiences at lower price points. This has made VR technology more accessible to a wider range of consumers, driving the adoption of VR hardware in the region. Another trend in the market is the integration of VR technology with other emerging technologies such as artificial intelligence and 5G. This integration has opened up new possibilities for VR applications and experiences, further driving the demand for VR hardware in NAFTA.

Local special circumstances: The VR Hardware market in NAFTA is also influenced by local special circumstances. For example, the presence of major technology companies in the region, such as Facebook-owned Oculus and HTC, has contributed to the growth of the VR hardware market. These companies have invested heavily in research and development, creating innovative VR products that cater to the specific needs and preferences of NAFTA consumers. Furthermore, the strong gaming culture in NAFTA has also played a significant role in the development of the VR hardware market. Gamers in the region are early adopters of new technologies and are willing to invest in VR hardware to enhance their gaming experiences.

Underlying macroeconomic factors: The growth of the VR Hardware market in NAFTA is also influenced by underlying macroeconomic factors. The region has a strong economy and a high disposable income, which allows consumers to spend on luxury and entertainment products such as VR hardware. Additionally, the increasing penetration of internet and smartphone usage in NAFTA countries has created a favorable environment for the adoption of VR technology. In conclusion, the VR Hardware market in NAFTA is experiencing significant growth and development due to customer preferences for immersive experiences, market trends such as affordability and integration with other technologies, local special circumstances including the presence of major technology companies and a strong gaming culture, and underlying macroeconomic factors such as a strong economy and high disposable income.

Data coverage:

The data encompasses B2C enterprises. Figures are based on VR hardware revenue, which includes digital spending on hardware (stand-alone and tethered units) that enables consumers to dive into the virtual world.

Modeling approach / market size:

The market size is determined through a top-down approach. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as consumer spending, internet penetration, 4G coverage, and historical developments.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are level of digitalization, adoption of technology, GDP per capita, and internet penetration.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).